BILL NUMBER: AB 405	CHAPTERED  09/15/99

	CHAPTER   378
	FILED WITH SECRETARY OF STATE   SEPTEMBER 15, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 15, 1999
	PASSED THE ASSEMBLY   AUGUST 26, 1999
	PASSED THE SENATE   AUGUST 23, 1999
	AMENDED IN SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JULY 13, 1999
	AMENDED IN SENATE   JUNE 28, 1999
	AMENDED IN ASSEMBLY   MAY 28, 1999
	AMENDED IN ASSEMBLY   APRIL 12, 1999

INTRODUCED BY   Assembly Members Knox and Torlakson

                        FEBRUARY 12, 1999

   An act to add and repeal Article 6.5 (commencing with Section 217)
of Chapter 1 of Division 1 of the Streets and Highways Code,
relating to highways, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 405, Knox.  Highways:  construction:  contracts.
   Existing law authorizes the Department of Transportation to make
and enter into, in the manner provided by law, any contracts required
for the performance of its duties.
   This bill would authorize the department to conduct a pilot
project to let design-sequencing contracts, as defined, for the
design and construction of no more than 6 transportation projects, to
be selected by the Director of Transportation.  The bill would
require the department to prepare a yearly status report on its
contracting methods, procedures, costs, and delivery schedules and,
upon completion of all design-sequencing contracts, to establish a
peer review committee for preparation of a report for submittal to
the Legislature that describes and evaluates the pilot project.  The
bill would require the design-sequencing contracts to be awarded in
accordance with specified procedures.
   The bill would specify that its provisions shall become
inoperative on July 1, 2004, and as of January 1, 2005, would be
repealed.
   The bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Under the traditional means of contracting for the
construction of highway improvements, construction of any portion of
the project cannot be commenced until the Department of
Transportation has developed complete plans and specifications for
the project, placed the contract out for bid, and awarded the
contract.
   (b) Recent construction practices have shown that there is
potential for faster performance and cost savings if commencement of
construction is not dependent upon completion of plans and
specification for the entire project, but only completion of plans
and specifications for each construction phase.  This form of
contracting is commonly known as design-sequencing contracting.
   (c) To test whether the design-sequencing form of contracting
would be beneficial to California in the administration of its
highway improvement program, the Director of Transportation should be
authorized to implement a pilot program of no more than six highway
improvement projects using design-sequencing design to permit
concurrent construction activities.
  SEC. 2.  Article 6.5. (commencing with Section 217) is added to
Chapter 1 of Division 1 of the Streets and Highways Code, to read:

      Article 6.5.  Design-Sequencing Demonstration and Evaluation
Program

   217.  For purposes of this article, the following terms have the
following meanings:
   (a) "Design-sequencing" is a method of contracting that enables
the sequencing of design activities to permit each construction phase
to commence when design for that phase is complete, instead of
requiring design for the entire project to be completed before
commencing construction.
   (b) A "design-sequencing contract" is a contract between the
department and a contractor that requires the department to prepare a
design and permits construction of a project to commence upon
completion of design for a construction phase.
   (c) "Design" is a plan completed to a level of 30 percent.
   217.2.  (a) Notwithstanding Chapter 1 (commencing with Section
10100) of Part 2 of Division 2 of the Public Contract Code, except
Section 10128 of that code, and Chapter 10 (commencing with Section
4525) of Division 5 of Title 1 of the Government Code, the department
may conduct a pilot program to let design-sequencing contracts for
the design and construction of no more than six transportation
projects, to be selected by the director.  For the purpose of this
article, these projects shall be deemed public works.
   (b) In selecting projects for the pilot program authorized under
subdivision (a), the director shall attempt to balance geographical
areas among test projects as well as pursue diversity in the types of
projects undertaken.
   (c) To the extent available, the department shall seek to
incorporate existing knowledge and experience on design-sequencing
contracts in carrying out its responsibilities under subdivision (a).

   217.4.  Not later than July 1 of each year for which the
design-sequencing contracts are underway, the department shall
prepare a status report on its contracting methods, procedures,
costs, and delivery schedules.  Upon completion of all
design-sequencing contracts, notwithstanding Section 7550.5 of the
Government Code, the department shall establish a peer review
committee to prepare a report for submittal to the Legislature that
describes and evaluates the outcome of the contracts provided for in
this article, stating the positive and negative aspects of using
design-sequencing as a contracting method.
   217.6.  Design-sequencing contracts shall be awarded in accordance
with all of the following:
   (a) The department shall advertise design-sequencing projects by
special public notice to contractors.
   (b) Contractors shall be required to provide prequalification
information establishing appropriate licensure and successful past
experience with the proposed work.
   217.8.  This article shall become inoperative on July 1, 2004,
and, as of January 1, 2005, is repealed, unless a later enacted
statute, that is enacted before January 1, 2005, deletes or extends
the date on which it becomes inoperative and is repealed.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to assist in alleviating, as soon as possible, the loss
of productivity caused by the continuing traffic gridlock and delay
on the state's system of highways, it is necessary that this act take
effect immediately.
